BrokerageIndustry News

Opposition to QRM proposal picks up steam

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The campaign to shoot down a proposal by federal regulators that lenders be required to retain at least 5 percent of the risk on mortgages they securitize when borrowers make down payments of less than 20 percent continues to pick up steam.

A coalition of consumer organizations, civil rights groups, lenders, real estate professionals and insurers coordinated with lawmakers today in bringing pressure to bear on regulators, releasing a white paper and joint letters from members of the House and Senate who have taken issue with the proposal.

Six federal agencies -- the Federal Reserve, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency, Department of Housing and Urban Development, Securities and Exchange Commission, Federal Housing Finance Agency -- are in the process of implementing risk retention policies mandated in the Dodd-Frank Wall Stree...